CELESTICA INC (CLS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CLS - CA15101Q2071 - Common Stock
340.76 USD
+15.67 (+4.82%)
340.8 USD
+0.04 (+0.01%)
We assign a fundamental rating of 7 out of 10 to CLS. CLS was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. Both the health and profitability get an excellent rating, making CLS a very profitable company, without any liquidiy or solvency issues. CLS is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, CLS could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
CLS had positive earnings in the past year.
CLS had a positive operating cash flow in the past year.
In the past 5 years CLS has always been profitable.
Each year in the past 5 years CLS had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.85%, CLS belongs to the top of the industry, outperforming 90.40% of the companies in the same industry.
CLS has a Return On Equity of 35.33%. This is amongst the best in the industry. CLS outperforms 95.20% of its industry peers.
The Return On Invested Capital of CLS (21.33%) is better than 96.00% of its industry peers.
CLS had an Average Return On Invested Capital over the past 3 years of 11.43%. This is above the industry average of 9.26%.
The last Return On Invested Capital (21.33%) for CLS is above the 3 year average (11.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.85% | ||
| ROE | 35.33% | ||
| ROIC | 21.33% |
ROA(3y)4.63%
ROA(5y)3.55%
ROE(3y)15.02%
ROE(5y)11.3%
ROIC(3y)11.43%
ROIC(5y)8.93%
1.3 Margins
CLS has a better Profit Margin (6.35%) than 71.20% of its industry peers.
CLS's Profit Margin has improved in the last couple of years.
CLS has a Operating Margin of 7.33%. This is in the better half of the industry: CLS outperforms 71.20% of its industry peers.
CLS's Operating Margin has improved in the last couple of years.
CLS's Gross Margin of 12.04% is on the low side compared to the rest of the industry. CLS is outperformed by 76.00% of its industry peers.
CLS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.33% | ||
| PM (TTM) | 6.35% | ||
| GM | 12.04% |
OM growth 3Y24.27%
OM growth 5Y29.03%
PM growth 3Y34%
PM growth 5Y30.13%
GM growth 3Y8.03%
GM growth 5Y10.39%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CLS is creating value.
CLS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CLS has been reduced compared to 5 years ago.
CLS has a worse debt/assets ratio than last year.
2.2 Solvency
CLS has an Altman-Z score of 7.35. This indicates that CLS is financially healthy and has little risk of bankruptcy at the moment.
CLS has a Altman-Z score of 7.35. This is amongst the best in the industry. CLS outperforms 84.00% of its industry peers.
CLS has a debt to FCF ratio of 1.97. This is a very positive value and a sign of high solvency as it would only need 1.97 years to pay back of all of its debts.
CLS's Debt to FCF ratio of 1.97 is fine compared to the rest of the industry. CLS outperforms 77.60% of its industry peers.
CLS has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.37, CLS is not doing good in the industry: 62.40% of the companies in the same industry are doing better.
Even though the debt/equity ratio score it not favorable for CLS, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.97 | ||
| Altman-Z | 7.35 |
ROIC/WACC2.67
WACC7.98%
2.3 Liquidity
A Current Ratio of 1.47 indicates that CLS should not have too much problems paying its short term obligations.
With a Current ratio value of 1.47, CLS is not doing good in the industry: 76.80% of the companies in the same industry are doing better.
A Quick Ratio of 0.88 indicates that CLS may have some problems paying its short term obligations.
The Quick ratio of CLS (0.88) is worse than 86.40% of its industry peers.
The current and quick ratio evaluation for CLS is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 47.90% over the past year.
The Earnings Per Share has been growing by 48.11% on average over the past years. This is a very strong growth
Looking at the last year, CLS shows a very strong growth in Revenue. The Revenue has grown by 22.09%.
Measured over the past years, CLS shows a quite strong growth in Revenue. The Revenue has been growing by 10.38% on average per year.
EPS 1Y (TTM)47.9%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%51.92%
Revenue 1Y (TTM)22.09%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%27.79%
3.2 Future
The Earnings Per Share is expected to grow by 38.14% on average over the next years. This is a very strong growth
Based on estimates for the next years, CLS will show a very strong growth in Revenue. The Revenue will grow by 27.74% on average per year.
EPS Next Y53.05%
EPS Next 2Y46.37%
EPS Next 3Y43.28%
EPS Next 5Y38.14%
Revenue Next Year26.48%
Revenue Next 2Y29.67%
Revenue Next 3Y30.76%
Revenue Next 5Y27.74%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 64.54, the valuation of CLS can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CLS is on the same level as its industry peers.
CLS's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.34.
CLS is valuated quite expensively with a Price/Forward Earnings ratio of 40.57.
The rest of the industry has a similar Price/Forward Earnings ratio as CLS.
The average S&P500 Price/Forward Earnings ratio is at 23.56. CLS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.54 | ||
| Fwd PE | 40.57 |
4.2 Price Multiples
CLS's Enterprise Value to EBITDA ratio is in line with the industry average.
CLS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 98.45 | ||
| EV/EBITDA | 38.28 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of CLS may justify a higher PE ratio.
A more expensive valuation may be justified as CLS's earnings are expected to grow with 43.27% in the coming years.
PEG (NY)1.22
PEG (5Y)1.34
EPS Next 2Y46.37%
EPS Next 3Y43.28%
5. Dividend
5.1 Amount
CLS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
340.76
+15.67 (+4.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners73.88%
Inst Owner Change-5.31%
Ins Owners0.52%
Ins Owner Change12.08%
Market Cap39.20B
Revenue(TTM)11.28B
Net Income(TTM)716.70M
Analysts81.11
Price Target249.34 (-26.83%)
Short Float %2.96%
Short Ratio1.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.15%
Min EPS beat(2)6.6%
Max EPS beat(2)11.71%
EPS beat(4)4
Avg EPS beat(4)6.73%
Min EPS beat(4)1.95%
Max EPS beat(4)11.71%
EPS beat(8)8
Avg EPS beat(8)9.68%
EPS beat(12)12
Avg EPS beat(12)8.66%
EPS beat(16)16
Avg EPS beat(16)9.16%
Revenue beat(2)2
Avg Revenue beat(2)6.2%
Min Revenue beat(2)5%
Max Revenue beat(2)7.4%
Revenue beat(4)3
Avg Revenue beat(4)3.54%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)7.4%
Revenue beat(8)7
Avg Revenue beat(8)3.49%
Revenue beat(12)11
Avg Revenue beat(12)3.14%
Revenue beat(16)14
Avg Revenue beat(16)3.37%
PT rev (1m)28.74%
PT rev (3m)54.04%
EPS NQ rev (1m)4.73%
EPS NQ rev (3m)19.76%
EPS NY rev (1m)2.21%
EPS NY rev (3m)8.11%
Revenue NQ rev (1m)3.97%
Revenue NQ rev (3m)14.35%
Revenue NY rev (1m)1.63%
Revenue NY rev (3m)5.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.54 | ||
| Fwd PE | 40.57 | ||
| P/S | 3.47 | ||
| P/FCF | 98.45 | ||
| P/OCF | 70.98 | ||
| P/B | 19.32 | ||
| P/tB | 27.75 | ||
| EV/EBITDA | 38.28 |
EPS(TTM)5.28
EY1.55%
EPS(NY)8.4
Fwd EY2.46%
FCF(TTM)3.46
FCFY1.02%
OCF(TTM)4.8
OCFY1.41%
SpS98.07
BVpS17.63
TBVpS12.28
PEG (NY)1.22
PEG (5Y)1.34
Graham Number45.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.85% | ||
| ROE | 35.33% | ||
| ROCE | 26.62% | ||
| ROIC | 21.33% | ||
| ROICexc | 23.67% | ||
| ROICexgc | 30.35% | ||
| OM | 7.33% | ||
| PM (TTM) | 6.35% | ||
| GM | 12.04% | ||
| FCFM | 3.53% |
ROA(3y)4.63%
ROA(5y)3.55%
ROE(3y)15.02%
ROE(5y)11.3%
ROIC(3y)11.43%
ROIC(5y)8.93%
ROICexc(3y)13.32%
ROICexc(5y)10.55%
ROICexgc(3y)18.44%
ROICexgc(5y)14.81%
ROCE(3y)14.26%
ROCE(5y)11.14%
ROICexgc growth 3Y31.4%
ROICexgc growth 5Y28.76%
ROICexc growth 3Y37.65%
ROICexc growth 5Y29.81%
OM growth 3Y24.27%
OM growth 5Y29.03%
PM growth 3Y34%
PM growth 5Y30.13%
GM growth 3Y8.03%
GM growth 5Y10.39%
F-Score7
Asset Turnover1.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.97 | ||
| Debt/EBITDA | 0.76 | ||
| Cap/Depr | 94.54% | ||
| Cap/Sales | 1.37% | ||
| Interest Coverage | 15.59 | ||
| Cash Conversion | 55.82% | ||
| Profit Quality | 55.56% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 7.35 |
F-Score7
WACC7.98%
ROIC/WACC2.67
Cap/Depr(3y)94.48%
Cap/Depr(5y)73.42%
Cap/Sales(3y)1.62%
Cap/Sales(5y)1.34%
Profit Quality(3y)94.3%
Profit Quality(5y)151.44%
High Growth Momentum
Growth
EPS 1Y (TTM)47.9%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%51.92%
EPS Next Y53.05%
EPS Next 2Y46.37%
EPS Next 3Y43.28%
EPS Next 5Y38.14%
Revenue 1Y (TTM)22.09%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%27.79%
Revenue Next Year26.48%
Revenue Next 2Y29.67%
Revenue Next 3Y30.76%
Revenue Next 5Y27.74%
EBIT growth 1Y62.33%
EBIT growth 3Y48.65%
EBIT growth 5Y42.42%
EBIT Next Year67.79%
EBIT Next 3Y43.39%
EBIT Next 5Y38.43%
FCF growth 1Y48.75%
FCF growth 3Y20.17%
FCF growth 5Y2.76%
OCF growth 1Y40.82%
OCF growth 3Y27.84%
OCF growth 5Y6.55%
CELESTICA INC / CLS FAQ
Can you provide the ChartMill fundamental rating for CELESTICA INC?
ChartMill assigns a fundamental rating of 7 / 10 to CLS.
What is the valuation status for CLS stock?
ChartMill assigns a valuation rating of 4 / 10 to CELESTICA INC (CLS). This can be considered as Fairly Valued.
How profitable is CELESTICA INC (CLS) stock?
CELESTICA INC (CLS) has a profitability rating of 8 / 10.
How financially healthy is CELESTICA INC?
The financial health rating of CELESTICA INC (CLS) is 7 / 10.
Can you provide the expected EPS growth for CLS stock?
The Earnings per Share (EPS) of CELESTICA INC (CLS) is expected to grow by 53.05% in the next year.